Daily Markets Briefing: STI up 1%

Find out about this technical rebound.

According to OCBC, the retreat on Wall Street last Friday night and the negative Nikkei start (down 0.6% now) are unlikely to provide any positive cues to the local bourse this morning.

Here's more:

As a recap, the STI initiated a 1% technical rebound in the last session to end the week just below the 3170 support-turned-resistance.

But with today’s tone likely to turn more downside biased, the index could face some headwinds trying to clear this immediate obstacle as investors take the opportunity to sell into strength.

Beyond this resistance, the next hurdle lies at 3240 key support-turned-resistance. On the downside, 3100 is the immediate key psychological support, followed by the next base at the 3050 gap support.